Gold struggles to hold on to its gains after the US dollar’s latest surge. The price action has met strong selling pressure at 1845, resistance from last February’s sell-off.
It would be too soon to call a reversal, however, as the underlying momentum remains bullish. The precious metal has bounced back from the 38.2% Fibonacci level (1811) with the RSI skimming over the oversold area.
The psychological level of 1800 sits at the 50% retracement level. A breakout above 1845 may extend the rally towards 1870.
